General News

Mid-year budget: Call Tax reduced from 9% to 5%

The Government has announced a reduction in the Communication Service Tax from nine percent to five percent.

The move which will see the cost of calls and data reduction forms part of measures being rolled out by the government in the wake of the COVID-19 pandemic.

Presenting the mid-year budget review to Parliament on Thursday, the Finance Minister, Ken Ofori Atta, the government will implement the reduction for the next six months.

Background of CST

The Communication Service Tax (CST) was introduced in 2008 at an ad valorem rate of six percent. The tax is levied on charges payable by consumers for the use of communication services.

In 2018 the tax brought in a total of GH¢420 million, representing a 27.7 percent increase from the estimated ¢304 million accrued in 2017.

The amount generated from the levy was 4.56 percent more than the projected ¢401.8 million in the 2018 mid-year budget.

The telcos started charging customers the revised CST from October 1, 2019, after the Minister of Finance, Mr. Ken Ofori-Atta, announced an increment in the tax from six to nine percent in the Supplementary Budget.

The Finance Minister in justifying the increment had said it was aimed at creating a viable technology ecosystem to among other things identify and combat cybercrime.



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